Something is rotten in the state of Denmark — and Finland and Norway, too! — for mobile POS solution iZettle. The company announced today that due to a policy decision by Visa Europe, merchants processing cards through its service in Denmark, Finland and Norway will no longer be able to accept Visa cards as of August 1.

On the company's blog this morning, company CEO Jacob de Geer apologized to iZettle customers in the three affected countries and said the company is hoping to bring Visa card acceptance back to them as soon as possible. De Geer didn't specify what prompted the decision but said merchants can still accept MasterCard and American Express in Finland and Diners Club in Denmark and Norway.

Losing the ability to process Visa is a serious setback for iZettle. The Stockholm-based company recently landed €25 million ($31.4 million) in Series B funding to expand its European footprint.

Unlike mobile POS solutions such as Square, the iZettle reader can perform both EMV and mag stripe transactions. The company had planned to move beyond the Nordic countries into other regions where EMV is standard. It had even begun running a trial in the U.K. (There was no word how participants in the U.K. pilot may be affected by the Visa Europe decision.) Those plans may be put on hold pending resolution of iZettle's issues with Visa Europe.

More as the story develops.

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